Credit insurance is currently available to protect the credit rating of credit card holders who are unable to make timely payments on their credit card accounts because of unforeseen circumstances such as disability, involuntary unemployment, family leave and death. Generally, such insurance makes payments to the insured cardmember's account and otherwise keeps the cardmember's credit account in good standing. Such credit insurance is relatively expensive and is heavily regulated.
There is a need for a credit protector program in which a cardmember can enroll for a small fee which provides for deferment of interest, fees, payments or adverse credit reporting on the cardmember's credit account during periods of unemployment, disability, hospitalization or family leave, and which operates in conjunction with the existing automated and computerized financial systems of a financial institution.